Should I Lend Money to my Children?

When your child asks you for help, as a parent it can be very difficult to say no to them. This means that when they ask you to lend them money, then you may think nothing of it and just let them have the money that they want. However, this may not be a good idea and it is worth thinking about why it might be sensible to not always lend the money that they need.

They May Rely on it

It might get to the stage where they start to rely on the money that you are giving them and this means that you might have to lend to them more and more often. They may get more and more reckless in their spending as well, because they know that it will not matter because they can borrow money from you. This might be okay for a while, but you might get to the stage where you can no longer afford to lend them money and then they will suddenly get stuck. They may not know how to budget properly and to only spend the money that they have and so could end up in all sorts of trouble. It can be better if you help them to understand more about managing money and budgeting so that they are more easily able to manage the money they have rather than needing to top it up all of the time.

Others May Get Jealous

It might be possible that others might be jealous of you lending money to one of your children. If you have others, they may feel that it is unfair that they have not been loaned the money. It could get even more difficult if another child is really desperate for money, asks you to lend them some and you cannot afford to because you have already leant it to their sibling. They could then get jealous and possibly even angry. This might impact your relationship with them as well as their relationship with their sibling too. So, consider what impact lending the money might have as it could be really nasty if the family fall out over it.

They May not Repay it

There is always a chance that the money that you have leant will not be repaid as well. This might not be a problem, if you have plenty of money. However, if you do not have that much money, then it could be difficult if you do not get back what you have leant and you need to suddenly find money form somewhere to pay for something. You could end up asking for it back and maybe even falling out with your child because you need that money and they are not able to give it back to you yet.

It can be difficult turning down this sort of request though, especially if you can see that your child will suffer as a result. Therefore, it could be something that perhaps you do with conditions. Perhaps come up with a repayment schedule so that you can agree on when it will be repaid. Obviously, it will need to be something that they can afford as well as something that will allow you to get the money back for when you need it. Also be open with all of the family about what you are doing so that they understand why you have taken this decision and that will hopefully stop any jealousy. You could always make sure that you do not lend out all of the money that you have and then if another child wants some, there will be some available for them as well.

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